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• W2067253723 abstract "Earlier efforts by Friedman examined infinite horizon oligopolies trying (and failing) to show existence of subgame perfect Nash equilibria with the firms' strategies being continuous reaction functions. Here, in a typical game theoretic model with discounting, we prove the existence of such equilibria. The equilibrium strategies mimic trigger strategies in their method of operation but are continuous, so that small defections from equilibrium actions result in small (per period) punishments. We prove our results by constructing equilibria in a fashion analogous to that found in proofs of Folk Theorems in repeated games." @default.
• W2067253723 created "2016-06-24" @default.
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• W2067253723 date "1990-12-01" @default.
• W2067253723 modified "2023-09-27" @default.
• W2067253723 title "Subgame perfect equilibrium with continuous reaction functions" @default.
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• W2067253723 doi "https://doi.org/10.1016/0899-8256(90)90002-c" @default.
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